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Jenny Cochran, a graduate of the Univeraity of Tennessee with 4 years of experience as an equites analyst, was recently brought in as assistant to
Jenny Cochran, a graduate of the Univeraity of Tennessee with 4 years of experience as an equites analyst, was recently brought in as assistant to the charman of the board of Computron Industries, a manufacturer of computer components Durng the previcus year, Computron had doubled its plant capacity, opened new sales offices outside its home territory, and launched an expenstve advertisng campaign. Cochran was assigned to evaluate the mpact of the changes. She began by gathering financial statements and other date. Note: These are available in the file Cho2 Tool Kit.xisx in the Mini Case tab. Assume that you are Cochran's assistant and that you must help her answer the following questions for Meissner: a. What effect did the expansion have orl sales and net incorne? What effect did the expansion have an the asset side of the balance sheet? What effect did it have on liabilities and equity? b. What do you conclude from the statement of cash flows? Jenny Cochran, a graduate of the Univeraity of Tennessee with 4 years of experience as an equites analyst, was recently brought in as assistant to the charman of the board of Computron Industries, a manufacturer of computer components Durng the previcus year, Computron had doubled its plant capacity, opened new sales offices outside its home territory, and launched an expenstve advertisng campaign. Cochran was assigned to evaluate the mpact of the changes. She began by gathering financial statements and other date. Note: These are available in the file Cho2 Tool Kit.xisx in the Mini Case tab. Assume that you are Cochran's assistant and that you must help her answer the following questions for Meissner: a. What effect did the expansion have orl sales and net incorne? What effect did the expansion have an the asset side of the balance sheet? What effect did it have on liabilities and equity? b. What do you conclude from the statement of cash flows
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